The $300,000 Baby

Raising children can be costly. A recent  study found that families earning $70,200 or more will spend a staggering $269,520 to raise a child through age 17.¹

This figure is a composite average, so it could cost some families much more. And this doesn't account for college costs, which could easily add  $50,000 for a four-year college education.²

Tackling College Costs
If a college fund was established with $5,000 when a child was 8 years old — and another $400 was added each month — the account would reach $84,277 by the time the student reached college age, assuming a hypothetical 8 percent average annual return.³

Although this is a good start, it may not fund college completely. In one survey, 93 percent of parents said they could have done more to save for their children's education.⁴ Even though most of them placed funding education as a top priority, many of their plans fell short.

The cost of raising a child and paying for college will not decline anytime soon. Putting a plan together now will give you a head start and help you pursue your college savings target.

1) U.S. Department of Agriculture, 2004
2) The College Board, 2005
3) This hypothetical example is used for illustrative purposes only and does not represent any specific investment.
4) InvestmentNews, October 18, 2004

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